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Credit Risk Management of the Commercial Bank on the Basis of Financial Crisis Forewarning Model

Author: ZengYing
Tutor: FuTaiPing
School: Xiangtan University
Course: Business management
Keywords: Bank Credit Risk Financial Distress Logistic regression Factor Analysis
CLC: F224
Type: Master's thesis
Year: 2010
Downloads: 314
Quote: 0
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Abstract


Since the 1980s, financial liberalization and deepening of the process of globalization, the world macroeconomic and financial market volatility increases, commercial bank credit risk and thus gradually increased. Financial market in the world in this outcome, China's commercial banks exposed financial foundation is weak and backward credit risk management technology issues facing the world's complex financial environment, China's commercial banks credit funds will inevitably be seriously threatened. Commercial bank credit risk has become one of the significant risks faced, but the extent of this risk control and closely related to banking operations. Therefore, China's commercial banks must learn from foreign experience in credit risk management and advanced management experience combined with his success, strengthen infrastructure, improve the management level, to achieve their own steady development. This article is in this context, by studying the financial crisis early warning model of commercial banks in the use of credit risk management in order to improve credit risk management capabilities. Explore the financial risk prediction in bank credit risk management operation, and to grasp the law, can improve the understanding and management of credit risk level. Credit risk through domestic and foreign banks and financial distress theory and practice review and summary, can be used to examine the current status of our credit risk management to discuss the financial crisis early warning model for credit risk management, feasibility, combined with China to build based on financial crisis early warning model of the actual credit risk management, make recommendations accordingly. In this study, the literature, analysis of hundreds of listed company's financial report, select 220 as the research sample, consolidated 19 financial indicators and three non-financial indicators, using statistical software SPSS13.0 factor analysis of early warning indicators, too the nine main factor into the model building, and finally the use of logistic regression analysis confirmed the prevention of financial crisis early warning credit risk model validity, and through empirical research and theoretical discussion, draw three conclusions: First, corporate solvency , growth, profitability, cash flow capacity and operational capability on the entity's financial position had significant effects; Second, firm size, industry and ownership concentration introduction of three non-financial indicators can improve crisis prediction accuracy; Third, firm size and the industry a significant effect on early warning, early warning ownership concentration on the long-term impact is not significant. This study investigates the use of financial crisis early warning model management of commercial bank credit risk effect. Through data analysis and empirical research, the model predicts the total sample classification rate reached 86.9%, justify the use of the model predicted better results can be used as commercial bank credit departments of reference when making decisions.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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